[Funding alert] Veranda Group Raises INR 425 Cr NCD from BPEA Credit

Veranda Learning, a listed enterprise offering end-to-end solutions in the education space, announced that the group has raised funds for an amount of up to INR 425 crore by way of issuance of Non-Convertible Debentures (NCDs) to funds managed and /or arranged by BPEA Investment Managers Private Limited (BPEA Credit).

This strategic move aims to fuel the company's growth trajectory by financing acquisitions, refinancing existing loans, and bolstering working capital requirements.

Mr. Suresh Kalpathi, Executive Director and Chairman of Veranda Learning, expressed enthusiasm about this development, stating, “This decision aligns with Veranda Learning's strategic vision to further solidify our position as a leader in the education space. The proceeds from the NCD issuance will be instrumental in supporting our expansion plans, enabling us to pursue strategic acquisitions, enhance operational efficiencies, and drive long-term value creation for our stakeholders.”

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Veranda Learning is still committed to advancing innovation, broadening its clientele, and providing value-added solutions while continuously generating high operational margins. The company's calculated choice to use NCDs to issue debt demonstrates its faith in the education sector's potential for future expansion and its capacity to seize new possibilities.

Speaking on this association, Ms Kanchan Jain, Head of BPEA Credit Group commented “We are pleased to partner with Veranda Group, a leader in India’s education space to support initiatives that transform education delivery and enhance access to quality education thereby creating a lasting impact. This investment is in line with our Fund’s objective of participating in growth-oriented businesses and partnering with industry leaders by providing bespoke capital solutions.

Anand Rathi Advisors were the lead bankers who helped in arranging the funds for the company.

Speaking on the transaction, Mr. Atul Thakkar (Director, Anand Rathi Investment Banking) commented, “Anand Rathi Group sees immense potential in this sector and pleased to have facilitated transactions exceeding US$450m in FY24 alone, including this significant deal. This transaction marks a milestone for the education sector, fostering consolidation in cash-generating assets. It will attract investor support for good quality platforms like Veranda. The proceeds will be strategically used for acquiring complementary assets and restructuring. We're committed to supporting Veranda's long-term goal of becoming the country's leading education platform, offering exceptional results for students and inviting other ecosystem players to join a listed company.”

About Veranda Learning

Founded in 2018 by the Kalpathi AGS Group - Veranda Learning Solutions is a public listed education company that offers a bouquet of training programs for competitive exam preparation, including State Public Service Commission, Banking, Insurance, Railways, IAS, and CA, as well as a slew of professional skilling and upskilling programs. Veranda Learning forayed into high-demand financial courses such as Chartered Accountancy through India’s premier CA test-preparation institute, J. K. Shah Classes.

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